Hon Carmel Sepuloni
Minister for Social Development
13 April 2018
MEDIA STATEMENT
Widening of loan scheme offers alternative to loan sharks
Minister for Social Development Carmel Sepuloni has today announced the widening of a low-interest loan scheme for
people who might otherwise fall victim to loan sharks.
Today “by Pacific for Pacific “ health support service provider Vaka Tautua has joined the Ministry of Social
Development’s Community Finance Initiative (CFI).
“CFI is a partnership between the Ministry, BNZ, and Good Shepherd New Zealand that aims to help people in financial
hardship to borrow money safely,” Ms Sepuloni said.
“It provides affordable credit to individuals and whānau on low incomes in the form of two loan products – a no-interest
loan to be repaid over 12 months and a low-interest loan to be re paid over 36 months.
Three sub-contract providers deliver the service – the Salvation Army, Aviva and now Vaka Tautua.
“Vaka Tautua is the third provider to join the CFI, providing low-interest loans in Auckland and Wellington – and is
looking to extend this service to Christchurch,” said Ms Sepuloni.
“Vaka Tautua will help more Pacific people who are single parents, older, disabled or seeking support for mental health
issues get access to loans that will lift their quality of life.
“Already the CFI has helped people on low incomes borrow $2 million, saving them more than $1 million in interest and
fees they might have had to pay if they’d borrowed from predatory lenders.”